Government agency financings today include the Student Loan Marketing Association's $250 million issue of six-month floating-rate notes.

A larger-than-expected amount of cash on hand is a major reason why the size of yesterday's weekly auction of three- and six-month notes was smaller than in the recent past.

Contrary Trend The ruling prompted funds to reduced the amount of six-month and nine-month notes they buy to keep their maturities shorter.

Earlier, the German government sold €2.68bn of six-month notes, yielding 0.0005pc, with was around 4 times covered.

The average rate for the six-month note was 3.38 percent, the same as a week ago.

Government agency issues scheduled for this week include today's offering by the Student Loan Marketing Association of $400 million of six-month floating-rate notes.

Government agency transactions this week include today's pricing of $500 million in six-month floating-rate notes by the Student Loan Marketing Association, or Sallie Mae.

Freddie Mac said these are its first offerings of three- and six-month interest-bearing notes.

After today's regular monthly offering of six-month floating-rate notes totaling $300 million, the association plans to sell $500 million in fixed-rate notes due in five years.

On Feb. 8, the company sold $500 million of six-month notes at a yield just 4 basis points, or hundredths of a percentage point, above the three-month Treasury bill.